Franchise News
Keuring will split into two public companies — one leading the $16 billion coffee market with Peet’s and Keuring and the other driving $11 billion in soft drink sales with Dr. Pepper and Canada Dry.
Keurig Dr Pepper (KDP) announced Monday it will acquire JDE Peet’s, the parent company of Peet’s Coffee, in an $18 billion deal. The acquisition will lead to KDP splitting into two independent, publicly traded companies: Global Coffee Co. and Beverage Co.
Global Coffee Co. will become the world’s largest pure-play coffee company, with brands like Peet’s, Keurig, L’OR and Jacobs under its umbrella. The new group is projected to generate around $16 billion in annual net sales and will operate in over 100 countries, holding a No. 1 or No. 2 market position in 40 of them. Beverage Co. will focus on soft drinks, producing over $11 billion in annual sales with powerhouse brands including Dr Pepper, Canada Dry, 7UP and A&W.
“Today’s announcement marks a transformational moment in the beverage industry, as we build on KDP’s disruptive legacy by creating two winning companies, including a new global coffee champion,” KDP CEO Tim Cofer said in a statement. “Through the complementary combination of Keurig and JDE Peet’s, we are seizing an exceptional opportunity to create a global coffee giant. This is the right time for this transaction, with KDP in a position of operational and financial strength, momentum across our evolved portfolio, and increasing coffee category resilience. By creating two sharply focused beverage companies with attractive and tailored growth propositions and capital allocation strategies, we are poised to generate significant shareholder value in both the near and long term.”
Meanwhile, Peet’s Coffee continues to face challenges at the store level. The chain started 2025 with 199 company-owned stores, down from 217 in 2022, with most located in California. Average unit volume (AUV) sat at $1.4 million in 2024, with drive-thru units outperforming at $1.7 million compared to $1.4 million for non-drive-thru locations. California shops averaged $1.5 million, while those outside the state earned about $1.1 million. Despite its declining footprint, Peet’s remains central to the new coffee-focused strategy.
Read the full press release here.
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